Preheat oven to 350°F (175°C). Line a 12-cup muffin pan with cupcake liners.
In a medium bowl, whisk together flour, baking powder, and salt.
In a large bowl, cream softened butter and sugar until light and fluffy.
Add eggs one at a time, beating well after each addition.
Mix in vanilla extract, maraschino cherry juice, lime juice, and lime zest.
Alternate adding flour mixture and milk to the wet ingredients, mixing until just combined.
Fold in chopped maraschino cherries gently.
Divide batter evenly among cupcake liners, filling each about 2/3 full.
Bake for 18-20 minutes or until a toothpick inserted into the center comes out clean.
Cool cupcakes completely on a wire rack before frosting.
For frosting, beat butter until creamy. Gradually add powdered sugar.
Mix in lime juice, lime zest, and milk as needed until fluffy and spreadable.
Frost cooled cupcakes and garnish with extra cherries or lime slices if desired.